Analysis: Europe's transaction tax likely would backfire

A group of European nations are moving forward with a proposed tax on financial transactions, including stocks, bonds and derivatives. However, history shows that attempts to tax transactions have forced activity to different jurisdictions and failed to meet revenue expectations. Transaction taxes "stem from the desire of politicians to punish the markets", said Bill Blain, a fixed-income strategist at Mint Partners. "But markets can always vote with their feet."